Dabur India, a leading Indian consumer goods company, has reported a 1.85% growth in net profit for the December quarter. For the quarter ended December 31, 2022, the company’s net profit stood at INR 283.3 crore (approximately USD 37.5 million), compared to INR 278.9 crore (approximately USD 36.5 million) in the same period of the previous year.
Dabur’s revenue from operations grew by 7.5% to INR 2,417.5 crore (approximately USD 315 million) in the quarter under review, compared to INR 2,251.5 crore (approximately USD 294 million) in the same period of the previous year. The company’s revenue growth was driven by a 9.5% increase in revenue from its farm and international businesses, which more than offset a 5.6% decline in revenue from its domestic FMCG (fast-moving consumer goods) segment.
Dabur’s operating expenses increased by 10.3% to INR 1,931.3 crore (approximately USD 250 million) in the quarter under review, driven by higher raw material and fuel costs, as well as a 12.4% increase in marketing and advertising expenses. The company’s profit margin declined by 124 basis points to 11.7% in the quarter under review, compared to 13.9% in the same period of the previous year.
However, Dabur’s net debt-to-equity ratio improved significantly to 0.33 at the end of the quarter under review, from 1.11 at the end of the same period of the previous year. The company’s cash and cash equivalents stood at INR 1,329.3 crore (approximately USD 173 million) as of December 31, 2022.
Commenting on the results, Dabur’s managing director, Sunil Dua, said, “Our quarterly performance has been driven by a strong showing by our farm and international businesses, which have helped to offset some challenges in our domestic FMCG segment. We are focused on driving growth through our brand-building initiatives, new product launches, and strategic expansion in new markets.”
Overall, Dabur’s results indicate a mixed performance, with both positive and negative trends in different areas of the business. While the company’s revenue growth and cash generation have been positive, its operating expenses and profit margin have been negatively impacted by various factors. The company’s management is focusing on driving growth through its marketing and branding efforts, as well as expanding its presence in new markets, which may help to offset some of the challenges in its domestic FMCG segment.